Tribunal Admits Insolvency Application: Corporate Debtor Faces Resolution Process

The Tribunal admitted the application under Section 9 of the Insolvency & Bankruptcy Code, 2016, for Corporate Insolvency Resolution Process against the Corporate Debtor due to default in payment of operational debt. A moratorium order was issued, and an Interim Resolution Professional (IRP) was appointed to oversee the resolution process. The IRP was directed to identify creditors, convene a Committee of Creditors, and develop a resolution plan within 105 days. The judgment emphasized compliance with the I&B Code and outlined the roles of the parties involved in the process.

---

---

Issues: Application under Section 9 of the Insolvency & Bankruptcy Code, 2016 for Corporate Insolvency Resolution Process due to default in payment of operational debt.

Analysis:
The Operational Creditor filed an application under Section 9 of the Insolvency & Bankruptcy Code against the Corporate Debtor for defaulting on payment of operational debt amounting to Rs. 24,49,058. The Corporate Debtor was served notice but did not appear, leading to an ex parte proceeding. The Operational Creditor presented invoices, a demand notice under Section 8 of the I&B Code, and a track report confirming delivery of the notice. The Corporate Debtor failed to respond within the stipulated time, indicating no payment or genuine dispute. The Operational Creditor affirmed compliance with Section 9(3)(b) and 9(3)(c) of the I&B Code.

The Tribunal found the application admissible based on the evidence presented. Consequently, the Tribunal admitted the application to initiate the Corporate Insolvency Resolution Process for the Corporate Debtor. A moratorium order was issued, and a public announcement was mandated as per Section 13 of the IBC, 2016. The moratorium under Section 14 of the I&B Code prohibited various actions against the Corporate Debtor, including suits, asset transfers, and recovery proceedings. Essential goods or services supply to the Corporate Debtor was protected during the moratorium period.

The Interim Resolution Professional (IRP) was appointed as per the Operational Creditor's proposal. The IRP was tasked with identifying creditors, convening a Committee of Creditors, and developing a resolution plan. The Operational Creditor was directed to pay an advance fee to the IRP. The resolution plan was to be finalized within 105 days from the admission of the Corporate Insolvency Resolution Process. The Registry was instructed to notify the order to all relevant parties.

The matter was listed for a progress report filing on a specified date. The judgment outlined the detailed process and legal provisions governing the initiation of Corporate Insolvency Resolution Process, emphasizing compliance with the Insolvency & Bankruptcy Code and the roles of the parties involved in the resolution process.

---